Glossary International Shipping

Type Meaning
ABC analysis A method for classifying company resources according to their importance with respect to stocks of raw materials, components, suppliers, customers, etc.
Accessibility A carrier’s ability to provide transportation services from an origin to a destination.
Accessorial charges A carrier’s fee for additional services specified in the contract, such as loading, unloading, pickup, and delivery.
Action message An alert that an MRP or DRP system generates to modify an existing planned or approved order.
Active stock Goods ensuring the continuity of production supplies or sale of products between two consecutive deliveries.
Activity-Based Costing A method of cost managing associated with the operations of the physical movement of goods, by type of activity and finished product.
Additional Commercial Invoice An invoice with additional information.
Advanced shipment notice A list with the designation of the goods transmitted to a customer or consignor (sometimes includes the expected arrival time).
Affreightment, Contract Of An agreement between the shipowner and the charterer on the hiring of a ship (all or part of its premises) for the carriage of goods. In this case, a consignor undertakes to pay the established fee (freight) for transportation, and a carrier – to deliver the goods to the port of destination.
Agency Fee Payment of agent services for servicing a vessel in a port, that is, for an agent performing the usual functions of representing the interests of a shipowner and assistance to the ship’s captain in a port. Sometimes called attendance fee.
Agency tariff Tariffs of an agent for his/her services for carriers.
Agent An authorized person (entity or individual) performing certain actions on behalf of another person (principal) on his behalf and in his interests.
Agglomeration Form of combining different companies into a whole by location.
Aggregate tender rate A special rate for a shipper if you offer more than 2 class-related shipments at the same time and one place.
Air cargo / Air freight Transportation of goods by an air carrier.
Air Cargo Agent A transport company that provides customers with a wide range of services to simplify the transport of goods by air.
Air Cargo Containers This is a pallet or container used to transport air cargo. Air Cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Carrier Freight forwarding company that provides air transportation services via air.
Air taxi Public means of transport are designed to carry passengers for a fee by air.
Air Waybill A document issued by a consignor or his agent which confirms the existence of an agreement between a shipper and a carrier on the carriage of goods by carrier’s airlines.
Airport and Airway Trust Fund (AATF) A fund that provides funding for federal obligations under the United States aviation system through several aviation-related excise taxes.
Alameda Corridor Surcharge (ACS) Surcharge for a container transported by rail through the ports of Long Beach and Los Angeles.
All Water The term used when transportation is carried out exclusively by water.
All-cargo carrier An air carrier that carries only cargo.
Amazon Reference ID A unique number used by Amazon.com to identify Fulfillment by Amazon (FBA) shipments upon arrival at the warehouse.
Amendment Fee Payment of changes or corrections to the contract or any other legal document of legal significance.
Antidumping Duties (ADD) Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.Additional import duty on goods exported at prices below the normal prices of the world market or domestic prices of the exporting country.
Any-quantity rate A rate that doesn’t depend on the quantity of cargo and is the same for any cargo.
Arrival Notice Notification of the estimated time of arrival of the vessel at a specific location (normally the destination).
Assignment One party to an agreement, contract, or financial instrument, with the consent of another party, transfers the rights, obligations, responsibilities, and benefits to a third party.
Audit The term is used to determine the accuracy of freight bills.
Auditing Assessment of the company’s activities for compliance with certain criteria and requirements, in accordance with regulatory documents.
Automate Manifest System (AMS) The system used by US Customs for submitting documents they require for electronic declaration of goods coming into the US.
Average cost Total cost, fixed plus variable, divided by total output.
Type Meaning
Back Haul Return of the unladen vehicle, which delivered to one point.
Back order The case when the company accepts an order for goods which currently not available. The order will be completed when the goods become available.
Backfreight A person who own ships can receive disbursement as reimbursement for cargo for goods which was returned back through the fault of consignees or consignors. This payment calls backfreight.
Balance of Trade The ratio of the prices of goods exported by a country to the prices of goods imported into it for a certain period of time.
Bale Bulk compressed bound and most often packaged bundle of goods: such as hay or cotton.
Barge A cargo vehicle in which its autonomous driving mechanism for moving goods may or may not be present. In most cases, inland water vessels use main barges with open tops, but there are not only open but also indoor barges for dry or liquid content. Barges can be joined together and pushed or pulled by tugboats carrying content weighing sixty thousand tons or more. Not very large barges for transporting goods between ship and land are called “lighters”.
Barratry Actions committed by the master or other personnel of the vessel for any illegal or criminal purpose, contrary to their obligations to the owners of the vessel, resulting in injury to the owners of the vessel. This includes inattention and negligence if it is as serious as a crime with proofs.
Barter Receiving something by an agreement that the payment will not be money, but the provision of any services or exchange for other goods.
Base Currency A type of currency whose value is considered as “one” in cases where the quote is between two types of currencies.
Basing-point pricing A system by which pricing is carried out, which incurs the cost of transporting goods from one point to another, even in cases where delivery does not occur at the point of basing.
Batch picking Collecting items from a warehouse for several (more than one) orders.
Beneficial Cargo Owner (BCO) This is an importer who gains control of the cargo using its own logistics assets instead of using a third-party source such as a forwarder or NVOCC.
Benefit-cost ratio The analytical technique used in state planning; a ratio of total measurable benefits divided by initial costs.
Bill of Lading, Through Consignment that covers goods from the point of departure to the final destination, when an exchange or transfer from one carrier to another is necessary to complete the trip.
Billable Weight Weight is taken as a basis when the price is generating.
Billing The operator terminal, which indicates the desired rate, calculates how much the delivery will cost and generates a freight bill.
BIF Bond in Force. This is equivalent to the duty/tax amount that would be payable if the shipment was imported into the country. For shipments going into bond forwarder is required to set up a collateral equivalent to the amount of the bond. Bond fee is a % of the BIF. Bond is then cancelled once goods are withdrawn from bond and exported or when client is ready to pay duty.
Binder A piece of cardboard, thin wood, or similar material that is inserted between the layers of containers to wait and hold a single stack.
Blanket rate A tariff that does not increase due to the distance over which delivery is carried out.
Blind shipping When one or more parties don’t know who the shipper is, whose receiver is, or both are.
Bond, In The goods in storage are transported in customs regime under customs control or until payment of import duties or some other fees, or to avoid payment of duties or fees until a later date.
Bonded Goods Imported goods are stored in the so-called customs warehouse, which is a gateway where the goods can be stored for some time without payment for storage and duties.
Bonded trucking Trucking charge for shipments to a Free Trade Zone.
Bonded warehousing One of the types of warehousing in which organizations store goods without makes payment of taxes and do not consider tariffs. The warehouse manager contacts himself with a tax or tariff collection agency to ensure that taxes are paid before the warehouse releases the goods.
Booking Request for a place and equipment on board the vessel for the cargo that needs to be transported.
Booking Confirmation Booking confirmation is a receipt.
Booking Fee Additional costs that the agent adds to the tariff.
Booking Number A kind of number that is assigned to a particular place of booking by the carrier or carrier agent.
Boxcar A boxcar, typically forty to fifty feet long, used to pack bulk goods.
Bracing To ensure delivery within the carrier’s vehicle to prevent damage.
Break Bulk Cargo Goods that are shipped as a single unit or package (for example: cargo on pallets, piece goods, bulky equipment, trucks), but not in the container.
Break Bulk Vessel Bulk cargo ship.
Break-bulk Separation of consolidated cargo into separate small batches for delivery to the final recipient. The cargo can be moved entirely inside the trailer, or it can be replaced and transferred to the connecting carriers.
Broker There are several definitions of this term 1) An organization that owns or rents equipment 2) An enterprise that helps to buy or rent services or goods 3) An agent who works for the shipowner or charterer in chartering.
Buffer Stock A quantity of goods or articles kept in storage to safeguard against unforeseen shortages or demands.
Bunker Adjustment Factor Ocean fuel surcharge.
Business logistics A special process in which planning, implementation and verification of the flow of goods, services and other similar information is provided.
Buyer Organization that is engaged in the acquisition of any goods or services.
Type Meaning
Cabotage Navigation of a commercial cargo or passenger ship between seaports of the same state.
Cage (1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor.
Cargo Goods that are transported by different types of vehicles.
Carnet A document allowing special categories of goods to cross international borders without paying duties. This document is issued by customs.
Carriage & Insurance Paid To Incoterm (CIP) Same as CPT but insurance is added for seller’s account on a definite part of the route. The shipping section covered by insurance can be any.
Carriage Paid To Incoterm (CPT) The seller arranges the delivery to the indicated place and includes it in the goods price. As a rule, such a place is a terminal where an ocean carrier (shipping line) can accept cargo for further transportation.
Carrier A person who, under a contract of carriage, performs or mediates in the delivery of goods using a vehicle.
Carrier Certificate and Release Order A document to advise customs of the shipment’s details. This document confirms the owner or consignee of the cargo.
Carrier’s Lien A freight carrier‘s right to hold on to cargo until they have received payment for transporting the goods.
Cartage (1) Movement of goods locally (short distances). (2) Сharge for pick-up and delivery of goods.
Cartel A group of countries producing the same product and having concluded an agreement between themselves to control the supply volume and price level of this product.
Cartment Customs form permitting in-bond cargo to be moved from one location to another under Customs control, within the same Customs district.
Cash Against Documents (CAD) Settlement form, in which the exporter receives payment after submission of shipping documents to the bank or the importer receives documents for the goods after payment.
Cash In Advance The buyer pays the seller in advance the shipment of goods.
Cash with Order A method of payment for goods, in which something is sold on a cash with order basis, payment must be sent along with the order, before the goods are sent out, and the transaction becomes binding on both buyer and seller.
Certificate of Insurance (COI) Issued by an insurance company or broker. The document confirms the existence of an insurance policy and summarizes the main aspects and conditions of the policy.
Certificate of Origin Сertificate submitted by an exporter to those countries requiring it, listing goods to be imported and stating their place of origin. Used for customs and foreign exchange purposes.
Channel of Distribution A network of agencies and other intermediaries that link the manufacturer and the end-user.
Chargeable Weight Payment for the weight of the item. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
Charter Party Contract by which the owner of a ship lets it to others for use in transporting cargo.
Charter Rates The tariff applied for chartering tonnage in a particular trade.
Charterer A person or organization that rents a ship for the transportation of cargo or passengers from its owner.
Chassis Usage Fee Fee charged by ocean carriers at certain U.S. ports for the use of their chassis.
Clearance A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Collect Freight Freight payable by the consignee at the port of destination.
Collective Paper All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Combined Transport Transportation of goods by at least two different modes of transport; widely used in container shipping. When using it, transportation can be carried out by sea and further by rail and/or road according to one document. Combined Transport is also referred to in the USA as “Intermodal Transport” and in other parts of the world as “Multimodal Transport”
Commercial Invoice Document claiming payment for goods supplied under conditions agreed between seller and buyer.
Commodities Products; commercial products and services.
Commodity Code A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Concealed Damage Freight that might have been damaged during transit, but, the damage/loss/shortage was not notated on the Proof of Delivery.
Conference A group of vessel operators joined for the purpose of establishing freight rates.
Conference Carrier An ocean carrier who is a member of an association known as a “conference.” The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
Congestion Surcharge This surcharge is dependent on unusual events, e.g. strikes, bad winter, major port fires.
Consignee A natural or legal person to whom, at the direction of the shipper, the goods should be delivered at the destination.
Consignment Freight sent under a single contract of carriage.
Consignor A natural or legal person who delivered the goods for carriage and is indicated as the sender in the carriage document.
Consolidation Collection and storage of small consignments from several consignors for their subsequent transportation by one transport document.
Consolidation Fee This is a fee for bringing together and packing several smaller shipments into the same container., applicable to ocean freight LCL and air freight.
Consolidation Point The location where consolidation takes place.
Consolidator An agent groups the cargo of several customers for container transportation.
Consolidator’s Bill of Lading A bill of lading issued by a consolidating freight forwarder to a shipper.
Container A single rigid, sealed, reusable metal box in which merchandise is shipped by vessel, truck, or rail.
Container Chassis Devices for transporting containers for ship or other operations.
Container Cleaning Fee Registration of all formalities and operations necessary to obtain permission to unload the container from the vessel and to load it on board the vessel.
Container depot A storage area, other than a container yard, where shippers and consignees may pick up or drop off empty containers.
Container Freight Charge The charge made for the packing or unpacking of cargo into or from ocean freight containers.
Container Freight Station A carrier-designated facility at which LCL cargo is received from consignors for consolidation and loading into containers or at which LCL cargo is unloaded from containers and delivered to consignees.
Container Fumigation (at Export) Disinfection allowance (fumigation).
Container ID An identifier assigned to a container by a carrier.
Container Manifest Document showing contents and loading sequence of a container.
Container Terminal An area intended for storing goods in containers, usually delivered by road, rail, and sea, where containers are picked up, dropped off, maintained and housed.
Container Vessel An oceangoing vessel designed specifically to easily handle the loading, stowage, and off-loading of ocean freight containers.
Container Yard A place for handling/storage of materials used for fully unified cargo in containers and/or empty containers.
Containerization The practice or technique of using a boxlike device in which a number of packages are stored, protected, and handled as a single unit in transit.
Contraband Cargo that is prohibited.
Contract of Carriage Contract on the legal obligations of the carrier and the client.
Cost and Insurance (CNI) Same as the FCA, but insurance is added for the seller’s account on a definite part of the route. The shipping section covered by insurance can be any.
Cost Freight Incoterm (CFR) Supplier has organized land delivery, completed port formalities, performed loading on ship’s board, and paid freight charges to the port (airport) of destination.
Cost Insurance Freight Incoterm (CIF) The same as CFR, but insurance is added for the seller’s account on a definite part of the route. The shipping section covered by insurance can be any.
Countertrade An umbrella term for several sorts of trade in which the seller is required to accept goods or other instruments or trade, in partial or whole payment for its products.
Countervailing Duties (CVD) Special duties imposed on imports to offset the benefits of subsidies to producers or exporters in the exporting country.
Cube Out When a shipping container has been filled by volume but has not reached its maximum weight limit.
Cubic Capacity The carrying capacity of a container according to measurement in cubic feet, cubic centimeters or cubic meters.
Customer An enterprise that uses the services as provided by another enterprise.
Customer Order The document containing the calculation of the amount of security and confirming the introduction of security for customs payments in the form of a bank guarantee, pledge agreement or guarantee.
Customs A government agency providing the procedure for moving goods and vehicles, things, and other items across the customs border, levying customs payments.
Customs Bond The bond protects the US government should an importer not pay any duties, penalties, etc. either while the goods are in CBP custody or after release.
Customs Broker A legal entity that has received a license to perform intermediary functions in the field of customs clearance of goods at the expense and on behalf of the represented person.
Customs Clearance The procedure provided for by the customs legislation of the country related to the import/export of goods and vehicles. Customs clearance includes: a) customs clearance, b) payment of customs duties, c) all types of administrative actions related to the legalization of cargo.
Customs Declaration A customs declaration is a legal document that lists the details of goods being imported or exported. It’s used by customs authorities to ensure that trades are compliant and that the correct taxes and duties are paid
Customs Declaration Software Customs declaration software is a program that helps businesses manage the import and export customs clearance process. It can help streamline the process, reduce errors, and ensure compliance with regulations.
Customs Duty (at Destination) Duties on exports from China
Customs Duty (at Origin) Duty on imports to the US may apply
Customs Entry The document that provides Customs and Border Protection (CBP) with details of your shipment, such as cost, classification, and origin.
Customs Invoice Payment charged by customs when importing or exporting goods.
Customs Value The notional value of the goods used for customs duties.
Type Meaning
Dangerous Goods Transported content that may pose a risk to safety or health and requires increased attention during its transportation.
Documents Against Acceptance Instructions that the bank gives to the person who is involved in the shipment. They contain information that documents that transfer the right to own a particular product should be delivered to the buyer only after the buyer accepts the attached project.
Documents Against Payment in international trade – an arrangement in which someone can collect imported goods only after paying them at the bank and confirming payment.
Declared Value for Carriage The value of the goods, declared by the shipper on a bill of lading, for the purpose of determining a freight rate or the limit of the carrier’s liability.
Deconsolidator An organization that provides packaging for orders, goods, etc.,
Deferred Rebate An arrangement whereby a carrier reimburses a percentage of the total freight cost to shippers who transfer their goods for a specific period (usually six months) to the carrier. This refund is paid at the end of the period.
Delivery Instructions A special document that the carrier receives so that he can pick up the goods.
Delivery Order A special document issued by the customs broker to the sea carrier as an argument for the delivery of goods by one of the parties.
Demurrage Penalty for misuse of free time that is allocated to load or unload cargo.
Density A characteristic of physical indicators that measures the weight of a cargo per unit volume or pounds per cubic foot.
Density rate Dependence of cost on such characteristics as weight and density of the cargo.
Detention Penalty for misuse of free time that is allocated to load or unload cargo.
Devanning Unloading contents from a container or other equipment.
Delivery Fee Depending on the type of cargo, it is determined for how long the payment for delivery will be contracted.
Duty Disbursement Expenses of agents that they incurred in port.
Type Meaning
Electronic Data Interchange (EDI) Surcharge associated with the transfer of data between computer programs of various companies in a standardized form.
Embargo The ban on the import or export of specific goods from the country.
Emergency Rail Service (ERS) Surcharge associated with expedited rail service.
Entry Form The document that must be filed with Customs to obtain the release of imported goods and to allow the collection of duties and statistics. Also called a Customs Entry Form or Entry.
Equipment Carriers use to facilitate their transportation services. Include containers, trucks, chassis, vessels, and airplanes, among others.
Equipment Interchange Receipt (EIR) A required document when transferring a cargo container from one vessel to another or to/from a shipping terminal.
Exception Rate A deviation or exception to the published class rate for a shipment of cargo.
Exclusive Patronage Agreements The freight rate applies to goods shipped by a firm that has entered into an exclusive patronage agreement with the shipowner’s cartel. By this contract, the consignor agrees to use only the cartel’s vessels and is granted preferential freight rates.
Expedited Freight Freight, which streamlines processes and only ties in with faster ocean and trucking services.
Expediting An agreement under which one party (freight forwarder) undertakes, at the expense of the other party (customer), to send or receive goods belonging to the customer, perform other related activities, and the customer to hand over for shipment, receive goods and pay forwarder services.
Export Broker A person acting as an intermediary between a seller and a buyer for a fee received during any transaction.
Export Declaration A form submitted by an exporter at the port of export with information about the goods being shipped, including type, number, and value.
Export License A document issued by a government authorizing the export of certain goods.
Export Sales Contract The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
EXW (Ex Works Incoterm) The meaning of it is that the recipient takes the goods from the premises of the supplier, it can be a store, warehouse, etc. The supplier does not bear any obligations, except for the shipment of goods. All costs are borne by the recipient.
Type Meaning
Fair Return A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.
Fair Value The value of the carrier’s property; the calculation basis has included original cost minus depreciation, replacement cost, and market value.
FAS (Free Alongside Ship) The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on a vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway.
FCA (Free Carrier) Supplier produced, packed, and prepared the cargo to be shipped. Goods are received by the buyer’s carrier, which picks up the load from the seller’s place. You can call FCA conditions “buyer’s pick-up.”
FCL (Full Container Load An ocean shipping mode, in which the entire container is intended for one supplier and occupies a full container (regardless of size).
Feeder A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.
Feeder Service Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.
Feeder Vessel A short-sea vessel which transfers cargo between a central hub port and smaller “spoke” ports.
Field Warehouse A warehouse that stores goods on the goods’ owner’s property while the goods are under a bona fide public warehouse manager’s custody. The owner uses the public warehouse receipts as collateral for a loan.
Fill Rate The percentage of order items that the picking operation actually found.
Fixed Costs Costs that do not fluctuate with the business volume in the short run.
Fixed Quantity Inventory Model A setup wherein a company orders the same(fixed) quantity each time it places an order for an item.
Flexible-Path Equipment Materials handling devices that include hand trucks and forklifts.
Flow Rack A storage method where a product is presented to picking operations at one end of a rack and replenished from the opposite end.
FOB (Free On Board) A supplier has organized land delivery, completed port formalities, and performed loading on ship’s board.
Food and Drug Administration (FDA) The US Department of Health and Human Services Agency, one of the federal executive departments.
For-Hire Carrier A carrier that provides transportation service to the public on a fee basis.
Forklift Truck A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
Forty-Foot Equivalent Unit (FEU) Conventional unit for measuring the capacity of freight vehicles. Also referred to as 2 TEU.
Forwarder’s Cargo Receipt (FCR) A document issued by a freight forwarder to the shipper that serves as certification of the receipt of cargo.
Free Time The period of time allowed for the removal or accumulation of cargo before charges become applicable.
Free Trade Zone A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.
Freight Goods being transported from one place to another.
Freight Bill The carriers invoice for payment of transport services rendered.
Freight Carriers The freight companies that physically transport “carry” the freight on behalf of shippers.
Freight Charge The rate established for transporting freight.
Freight Class A type of cargo has been given certain characteristics that dictate how much it costs to transport them.
Freight Collect The freight and charges to be paid by the consignee.
Freight Forwarder An enterprise that provides services to facilitate the transport of shipments. Services can include documentation preparation, space and equipment reservation, warehousing, consolidation, delivery, clearance, banking and insurance services, and agency services. The forwarder may facilitate transport by land, air, ocean, or may specialize in one mode of transport. Also called Forwarder or Foreign Freight Forwarder.
Freight Prepaid The freight and charges to be paid by the consignor.
Freight Quotation A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
FTL (Full Truckload) Transportation of cargo that completely fills the truck.
Fuel Surcharge Mechanism (FSC) Drayage fuel.
Fumigation If consolidated into a container, the surcharge applied to the disinfection of the container.
Fumigation Certificate A document that serves as confirmation that any wooden packing materials (ie, pallets) used in a cargo shipment have been fumigated.
Type Meaning
Gang A group of stevedores, usually four to five members, with a supervisor. This group is engaged in loading and unloading the vessel.
Gangway A narrow portable platform for safe, comfortable, and quick movement of people between a vessel and a terminal.
General Rate Increase (GRI) The amount by which ocean carriers increase their base rates across specific lines, generally as a result of increased demand.
General-Commodities Carrier A common motor carrier that carries general commodities or all commodities (except special commodities).
General-Merchandise Warehouse A warehouse for storing a variety of goods.
Goods A term associated with more than one definition: 1) Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper. 2) Common term indicating movable property, merchandise, or wares. 3) All materials which are used to satisfy demands.
Gross Registered Tons A ship’s total internal volume expressed in “register tons”, each of which is equal to 100 cubic feet (2.83 m3). Gross register tonnage uses the total permanently enclosed capacity of the vessel as its basis for volume. Typically, this is used for dockage fees, canal transit fees, and similar purposes where it is appropriate to charge based on the size of the entire vessel.
Gross Weight The mass of the goods, together with the packaging (inseparable from the goods until their consumption) and external packaging (boxes, bags, barrels, etc.)
Type Meaning
Harbor Maintenance Fees (HMF) The fee is struck at 0.125% of the value of the commercial cargo shipped through seaports only.
Haulage Transportation services locally.
Hazardous Surcharge associated with dangerous goods; dependant on class.
Hazardous Goods Goods that, as a result of a traffic accident, will harm the health or life of people and/or the environment. Also called Dangerous Goods.
Heavy Lift Surcharge Surcharge if a container is overweight and requires lifting on a rail.
High Cube (Hi-Cube, HQ) A container type with a capacity of over 40 feet.
House Bill of Lading A bill of lading issued by a freight forwarder for consolidated sea freight shipments.
Type Meaning
Igloo An air freight cargo container designed to fit the interior contours of a specific airplane.
In Gate The transaction or interchange that occurs at the time a container is received by a rail terminal or water port from another carrier.
Incoterms Set of international trade terms published by the International Chamber of Commerce. The dictionary contains terms on the basic conditions of supply related to the transportation process, clearance, etc.
Inland Bill of Lading A legal document required for the transportation over land. An inland bill of lading serves as both the carrier’s receipt to the shipper and the carriage contract.
Inland Carrier A transportation company that hauls export or import cargo between ports and inland points.
Inland Haulage Charges (IHC) The transportation costs incurred in transporting goods from a seaport of loading to an inland container freight station, and vice versa.
Inspection Certificate A document confirming that the goods were in good condition prior to shipment.
Insurance A system of measures aimed at full or partial compensation of losses from certain risks (consequences of natural disasters and accidents, loss of wealth and disability, etc.) by transferring their consequences from one party (insured) to another (insurer) for a certain fee.
Insurance Certificate A document is specially issued in addition to the insurance policy for customer information as a sign that the contractor has implemented all types of insurance provided for by the terms of the contract.
Intermodal transportation The use of more than one mode of transport for the transport of goods.
Invoice A document certifying the actual delivery of goods and/or the provision of services and their value.
ISF Filing This cost covers lodging in compliance with CBP’s (US Customs and Border Protection) ’10+2′ advance cargo reporting requirements.
ISPS Code The International Ship and Port Facility Code adopted by an IMO Diplomatic Conference in December 2002. Measure is designed to strengthen maritime security. (ISPS Code – Chapter XI-2 of SOLAS).
Issuing Carrier The carrier who issues the bill of lading and with whom the contract of carriage is concluded.
Type Meaning
Joint Rate A single tariff is charged for the transportation of goods over a route by two or more carriers.
Type Meaning
Known Loss Loss of cargo detected before or during shipment.
Type Meaning
Labeling Surcharge associated with labeling Pos.
LCL (Less Than Container Load) Delivery of collective cargoes from 1m3 to 15m3, transported in a common container with other shippers in order not to overpay for the delivery. It is considered the most economical way to deliver small quantities of goods.
Letter Of Credit An advance instruction by your bank to an overseas bank to guarantee payment to the seller once certain delivery conditions have been met.
LTL (Less Than Truck Load) Consists of goods of different consignees, which are consolidated in warehouses. It is advantageous to order LTL when transporting small consignments, as the customer pays only for the place that is necessary for his cargo.
Type Meaning
Manifest A list of all cargoes that pertain to a specific shipment, grouping of shipments, or piece of equipment.
Marine Insurance Loss and damage insurance at sea excludes losses that can be recovered from the carrier.
Material Safety Data Sheet (MSDS) A document that contains information about the physical, chemical, explosive, and radioactive data of hazardous materials in a shipment.
Measurement ton Forty cubic feet; used in water transportation rate making.
Merchandise Processing Fee (MPF) A fee for customs clearance and border protection related to most imported goods, whether formal or informal entry.
Modal split The relative use that companies make of transportation modes; the statistics include ton-miles, passenger-miles, and revenue.
Multimodal Shipping The use of more than one mode of transport for the transport of goods.
Type Meaning
Net Weight Mass of goods without packaging and exclusive of any containers.
Notify Party The abbreviation of the name of an organization that should be notified when a shipment reaches its destination.
NVOCC (Non-Vessel Owning Common Carrier) An individual or company that arranges transportation, but does not own or operate any freight vessels.
Type Meaning
Ocean Freight The shipping of goods by sea via shipping containers.
Ocean Waybill A document that draws up the contract for the carriage of goods by sea.
Off-hire Clause Terms of a time charter agreement on the suspension of payment for the use of a vessel.
Off-load Discharge of cargo from a vessel.
Open Rates A rate negotiated by a shipper at a shipping line (conference) for additional loading of the agreed limited consignment to one of the vessels of the line.
Open Registry A term used in place of “flag of convenience” or “flag of necessity” to denote registry in a country that offers favorable tax, regulatory, and other incentives to ship owners from other nations.
Open Top Container A container with an open roof and designed to carry cargo that is too large to be loaded through standard container doors, such as machinery.
Overtonnaging A situation where there are too many ships generally or in a particular trade for the level of available cargoes.
Type Meaning
Packing List A product document containing a list of items included in one package (box, container, bale, etc.), which is necessary if one package contains goods of different assortments.
Pallet A platform that allows consolidation of general cargo with the aim of accelerating and reducing the cost of their processing using mechanical means.
Pallet Charge Surcharge applied on shipment that require palletization.
Pallet wrapping machine A machine that wraps a pallet’s contents in stretch-wrap to ensure safe shipment.
Partial Containerships Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.
Partner Government Agency Filing (PGA) A division of the US federal government that regulates the import of specific products into the US.
Peak Season Surcharge (PSS) Market imposed surcharge during high volume seasons.
Pier Pass Surcharge associated with picking up containers from the port of LA during peak hours (3 AM-6 PM)
Port Declaration Customs-related charge for documentation.
Port of Discharge Port that cargo arrives to.
Port of Loading Port that cargo departs from.
Port State Control Inspection of foreign ships in national ports in order to verify compliance of a ship with the requirements of international law.
Power of Attorney (POA) A legal document used in shipping to grant a customs broker the authority to process Customs clearance on your behalf.
Pre-pull Surcharge associated with pulling containers from a port/ramp terminal to store in trucker yard.
Prepaid Freight Note in the transport document indicating that freight is prepaid in the port of loading.
Pro Forma Invoice An invoice issued for partial deliveries of goods or when goods are accepted upon arrival at the buyer.
Pro-forma A template or example document containing sample data that will be replaced with real values when these are available.
Purchase Order A written agreement between a seller and a buyer on the supply (purchase) of goods or services at an agreed price and at an agreed time.
Type Meaning
Quality Control The process of checking product quality for compliance with standard requirements.
Type Meaning
Rail overweight fee Surcharge associated with overweight containers on rail.
Rail Waybill The bill of lading for international rail freight transport.
Rate basis point The major shipping point in a local area; carriers consider all points in the local area to be the rate basis point.
Re-consignment A carrier service that permits a shipper to change the destination and/or consignee after the shipment has reached its originally billed destination and to still pay the through rate from origin to final destination.
Reefer A refrigerated container used to transport perishable goods.
Release Approval Document to advise that goods are available for further movement or action.
Return Cargo A cargo which enables a ship to return loaded to the port or area where her previous cargo was loaded.
Revenue Ton The unit used in billing in the freight industry.
Ro-Ro Ship A vessel for transporting goods on a wheelbase (cars, trucks, railway wagons) and passengers. The fundamental difference between vessels of this type is horizontal loading/unloading through an inclined bow or (usually) stern; this design is called a “ramp.”
Rolling Cargo Cargo which is on wheels, such as truck or trailers, and which can be driven or towed on to a ship.
Type Meaning
Safety stock Reserve stock, below which the level of stocks for this product should not fall.
Salvage material Unused material that has a market value and can be sold.
Scrap material Defective material that has no market value and cannot be sold.
Screening charge Surcharge related to airport terminal screening.
Sea Waybill Transport document used in shipping. The cargo is issued to a specific consignee specified in the sea waybill if he can document his identity, and at the same time, he doesn’t need to present his original copy of this waybill.
Security Filing The importer or their agent is required to electronically submit information relating to the shipment. This term is used in the USA.
Separable cost A cost that a company can directly assign to a particular segment of the business.
Service The defined, regular pattern of calls made by a carrier in the pick-up and discharge of cargo.
Service Contract A contract to optimize the flow of services provided by enterprises to consumers, rendered to each other by partners in the supply chain, as well as intra-company flows.
Ship agent An authorized person (individual or firm) performing certain actions on behalf of another person (principal) on his behalf and in his interests.
Shipbroker An intermediary that facilitates the execution of retail transactions between interested parties (customers) on their behalf and at their expense.
Shipment A load of goods sent by sea, road, train, or air.
Shipment Point A specific location from where goods will depart for movement.
Shipper’s agent A firm that primarily matches up small shipments, especially single-traffic piggyback loads, to permit shippers to use twin-trailer piggyback rates.
Shipper’s Letter Of Instruction (SLI) A note from the exporter to the freight forwarder with instructions on how a shipment is being sent and where it is going.
Shipping Quote A document that breaks down the individual legs of a shipment and the surcharges each will incur, as per your freight quote.
Shipping Types Different levels of service that you will use to fulfill your orders.
Special Customs Invoice In addition to a customs invoice, some countries require a special customs invoice designed to facilitate the clearance of goods and the assessment of customs duties in that country.
Spot Voyage A charter for a specific vessel to move a single cargo between indicated loading port(s) and discharge port(s) in the near future.
Stevedore Specialized organizations and firms engaged in loading and unloading ships.
Storage Cost of storing cargo in an off-site warehouse.
Stowage The placing of goods in the cargo areas of ships with the aim of leveling it or stuffing under-deck voids. It is usually used when loading bulk and break bulk cargo.
Stripping Surcharge associated for breaking down a container.
Surcharge An add-on charge to the applicable charges; motor carriers have a fuel surcharge, and railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.
Type Meaning
Tare weight The weight of the container and/or packing materials only – excluding the weight of the goods inside the container.
Tariff A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. The document sets up a contract of carriage between the shipper, consignee, and carrier.
Telex Origin charge for an original BL issued for shipment and the supplier holds the hard copy forms.
Toll Fee Surcharged associated with drayage over a bridge or through a highway.
Ton-mile A freight transportation output measure that reflects the shipment’s weight and the distance the carrier hauls it; a multiplication of tons hauled and distance traveled.
Tonnage The volumetric characteristic of the vessel, expressed in cubic meters, shows how much cargo can be accepted for transportation.
Tracing Determining a shipment’s location during the course of a move.
Tracking A system for tracking the location of shipments on the map in real-time.
Traffic Mitigation Fee (TMF) A fee paid when a terminal becomes congested.
Tramp Service Vessels operating without a fixed itinerary or schedule or charter contract.
Transit time The total delivery time of the container (cargo), calculated from the moment of loading onto the vessel until the moment of unloading at the port of destination.
Transload Cost to transfer containers from 40s/HCs to 53′ trailers.
Transmittal Letter A letter accompanying the supply of securities, documents or other property, usually containing a brief description of the securities, documents or property being sent and an explanation of the transaction.
Transport Arbitrary at Origin A fee covers haulage from the exporter’s premises to the port/warehouse.
Transshipment Moving cargo from one vessel or another vehicle to another vehicle at the same transport point.
Tri-axle Surcharge associated with drayage of overweight containers.
Trucker unloading time Surcharge for unloading at final destination.
Trucker waiting time Surcharge for unloading at final destination.
Twenty-Foot Equivalent Unit (TEU) A shipping container whose internal dimensions measure about 20 feet long, 8 feet wide, and 8 feet tall.
Type Meaning
UN Number A four-digit code used to indicate hazardous materials and products.
US Customs and Border Protection (CBP) A law enforcement agency that manages goods shipped to the United States.
Type Meaning
Valuation Charges Transportation charges to consignors who declare a value of goods higher than the value of the carrier’s liability limits.
Variable cost A cost that depends on how much the IT service is used, how many products are produced, the number and type of users, or something else that cannot be fixed in advance.
VAT Value-added tax surcharge on the value of the goods.
Vessel Manifest A document that contains all the basic data about the cargo, recorded for each port separately, and contains more detailed information about the cargo than the bill of lading.
Voyage Charter Charter for a specific voyage or voyages between certain ports or areas of loading or unloading.
Type Meaning
Warehouse Cost of storing cargo in an off-site warehouse.
Waybill A document that draws up the contract of carriage of goods.
Wharfage A fee charged by sea carriers to cover the port authority’s costs.
Type Meaning
X-Ray Exam Сarried out by X-raying of the detail under examination with fixation of the image on the X-ray film, reusable phosphorous plates, or digital image detector.
Type Meaning
Yard Storage A fee for storage in an open area instead of a terminal.
Type Meaning
Zone Rate The type of freight rate for determining the cost of moving around geographic areas.